RAI Seeks EI Towers Contract Extensions Before RaiWay Merger Deal in Italy
Overview of the RAI, EI Towers, and RaiWay Merger Negotiations
By Elvira Pollina
Background of the Merger Talks
MILAN, May 26 (Reuters) - Italy's RAI is pushing for EI Towers to extend contracts with broadcasters using its infrastructure before it merges with the state broadcaster's RaiWay to ensure longer-term business stability, three sources told Reuters.
The issue is a sticking point in talks between RaiWay and shareholders in EI Towers ahead of a June 15 deadline to reach a deal, said the sources, who declined to be named because the discussions are not public.
History and Ownership Structure
A merger between Milan-listed RaiWay and privately owned EI Towers has been on the radar for nearly a decade.
EI Towers is 60% owned by Italian infrastructure fund F2i, with the remainder held by Italy's top commercial broadcaster Mediaset, part of the Berlusconi-controlled MFE-MediaForEurope which is also the tower company's biggest customer.
Potential Impact of the Merger
A tie-up would create an Italian TV tower leader worth nearly €4 billion, including debt.
Key Issues and Contract Extension Demands
RAI is pushing for EI Towers to secure extensions of its contracts, including with Mediaset, to around 2037, the people said. The contracts are due to expire in 2032, when concessions for the use of broadcasting frequencies are due to lapse.
Addressing the matter might require an extension of the talks beyond the current deadline, they added.
Stakeholder Responses and Comments
F2i, MFE and RAI declined to comment. RaiWay and EI Towers were not available to comment.
Regulatory and Legal Considerations
Negotiations, which stemmed from a memorandum of understanding signed by Treasury-owned RAI, F2i and MFE in December 2024, have already been extended after missing earlier end-March and end-September deadlines.
Government Decrees and Ownership Obligations
In 2024, Rome approved a decree requiring any cut in RAI's stake to be through combining entities in the same sector.
This confirmed an existing obligation for RAI, which owns 65% of RaiWay, to maintain at least a 30% stake in its tower business, which would remain listed.
(Reporting by Elvira Pollina, additional reporting Giuseppe Fonte, editing by Alexander Smith )
